GBP/USD PRICE ANALYSIS: POSTS WEEKLY LOSSES, DIRECTIONLESS BENEATH 1.2650
- GBP/USD steady following a positive UK GDP report and rising US PCE Index.
- Technicals cap pair below 1.2700, key for buyer momentum.
- Strong support at 1.2634/45 (50 & 100-DMAs); RSI suggests seller dominance, risk of more losses.
The GPB/USD is subdued during the North American session on Friday following a positive UK GDP report, yet an uptick in the Fed’s preferred gauge of inflation, the PCE Price Index, capped the major, which trades at 1.2642, virtually unchanged.
GBP/USD Price Analysis: Technical outlook
After bouncing off the weekly lows reached on Wednesday, the GBP/USD capped its losses and remained below the 12700 psychological figures, a crucial level for buyers to regain control.
However, sellers are also pressured as they face strong support at the confluence of the 50 and 100-day moving averages (DMAs) at around 1.2634/45, which, if cleared, could exacerbate further downside.
The Relative Strength Index (RSI) hints sellers remain in control, meaning further losses are expected.
The psychological figure of 1.2600 would be the first support. Once surpassed, the next demand zone to challenge would be the 200-DMA at 1.2555, followed by the 1.2500 mark.
For a bullish continuation, traders must claim 1.2700 and clear a previous support trendline turned resistance at around 1.2730/40.
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